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Infrastructure & PPPs in Malaysia - Q12021 Update

MALAYSIA saw record-low bid rates for the solar projects in LSS4 announced in Mar’21, in line with declining prices seen in previous LSS rounds. There were a total of 93 bidders for the 30MW to 50MW package and the submitted bids varied from 13. 99 sen per kWh to 23.88 per kWh.

While the renewable energy (particular solar) continued to see both greenfield and brownfield activity, a notable feature is that the domestic industry is given preference and international investors/ players may need to wait for few more years for the industry to open up in future.

Read the key developments in Q12021 in the country in our latest insight.




Malaysia is preparing the terms of reference for a new study to determine whether to move ahead with a high-speed railway project.

The move comes after Malaysia and Singapore decided to cancel a cross-border high-speed railway line connecting the city-state and Kuala Lumpur.

The new study will examine possible routes and financing options and how the project can contribute to the country's economic development. The Malaysian government is considering developing a line connecting Kuala Lumpur with Johor Baru city.


A joint venture involving German solar developer ib vogt has reached financial close on a 116 MWp solar project in Malaysia. Malayan Banking Berhad (Maybank) provided a senior loan for the Coara Marang solar project in the northeast of Malaysia.

The JV between ib vogt and its Malaysian project partner Coara Solar has also begun construction of the project. The JV’s plans to raise debt for the project.

In June 2020, the Coara Marang project signed a 21-year power purchase agreement with the country’s largest electricity utility, Tenaga Nasional Berhad (TNB). The JV has been developing the project under the third round of the Suruhanjaya Tenaga’s (Energy Commission of Malaysia) Large Scale Solar (LSS3) tender. The tender was concluded at the end of 2019.

Once operational by the first quarter of next year, the Coara Marang solar project will deliver some 230 GWh of electricity per year.


Bus terminal developer Perak Transit's arm Terminal Urus has teamed up with a reservation and ticketing company to upgrade, manage and operate a transportation terminal in Malaysia.

The agreement between Terminal Urus and Energetic Point will include managing the integrated public transportation terminal (IPTT) - called Terminal Sentral Kuantan - and an investment by the two companies to revamp the development. The partnership will last for a period of nine years ending 31 January, 2030, while the concession's validity is till August that year.

The transport hub will serve the people of Kuantan city in the state of Pahang and other coastal towns through its 18 platforms, five arrival bays, 10 holding bays and 37 express bus operators.

Terminal Urus will pay MYR 3.05m (USD 753,000) to Energetic Point as part of the investment made by the latter for the concession. In return, Terminal Urus will receive a fixed monthly management fee.

The partnership will be Bursa Malaysia-listed Perak Transit's first venture into operating a transport terminal outside Perak state as well as its first third-party terminal management deal. Till now, the company has focused on building, owning and operating its own transport terminals as well as providing bus services.

Perak Transit plans to start work on the third one, Bidor Sentral, in the second half of this year, with an estimated construction period of two years.




Malaysia's Energy Commission has awarded a 50 MW solar power project to local palm oil plantation and property development company Gopeng. The company was shortlisted for the project, to be built in Perak state, in the fourth round of bids for large-scale solar (LSS- 4) projects in Malaysia

A total of 30 bidders were shortlisted for LSS-4.The bidders include Solarvest Holdings and JAKS Resources. Malaysia launched the tender for LSS-4 in June last year for solar power projects across the country with a total capacity of 1 GW.

Only 100% locally-owned private companies or listed companies with a 75% local shareholding were allowed to bid for the projects in LSS-4. Previous LSS rounds allowed both domestic and international bidders to bid.


Malaysian construction and facilities management company Widad Group has set up a wholly owned power generation and heating subsidiary.

Widad Energy will operate power generation facilities and install non-electric solar energy collectors - a system that uses solar radiation for heating services. It will also engage in investment holding activities.

In Q12021, Widad partnered with Motion Ventures to operate a proposed 1 GW solar power project in Malaysia. Motion Ventures, a local solar power producer, has submitted bids for the project, which will be located in Perak state. The development will include 66 community solar projects which are expected to supply electricity to the national grid through power purchase agreements.

Bursa Malaysia-listed Widad Group is primarily involved in construction, engineering and integrated management of buildings and infrastructure facilities. Some of its widely known projects include the servicing of Istana Negara - the Malaysian monarch's palace - and JB Sentral - an important railway station in Malaysia's Johor state.




Malaysia launched the tender for LSS-4 in June 2020 for solar power projects with a total capacity of 1 GW. Only 100% locally-owned private companies or listed companies with a 75% local shareholding were allowed to bid for the projects. Previous LSS rounds allowed both domestic and international bidders to submit bids.

The LSS4, which was launched with an aim to stimulate the recovery of the economy, was widely seen as a move to allow bidders (particularly local bidders) who were unsuccessful during LSS3 to repurpose their submission packages and, more particularly, the restriction on foreign participation was seen not only as a move to encourage the participation of local solar industry players but also a protectionist move to address complaints raised by local players regarding the LSS3 results mentioned above.

The LSS4 results issued by the EC on 12 March 2021 show that it has shortlisted 30 out of the 137 bids received and awarded projects of an aggregate of 823.06MWa.c. (out of the 1,000MWa.c. offered in the RFP).


Malaysia's Ministry of Housing and Local Government is seeking to award a waste-to-energy project in the southwestern part of the country in Q32021.

Bidders will need to be at least 51%-owned by a Malaysian company and have experience managing similar solid waste management facilities. The proposed facility - to be located in the Sungai Udang region in the state of Malacca - will need to have a minimum waste processing capacity of 800 tonnes of waste per day,

The government aims to start construction in 2022 and begin commercial operations in 2025.The proposed technology to be used for the facility should have a track record of at least three years and be able to operate for at least 8,000 hours per year. The facility will sign a power purchase agreement with the Energy Commission, the sector regulator.


Masdar and Abu Dhabi National Oil Company (ADNOC) have signed a memorandum of understanding (MoU) with Malaysia's national oil and gas company Petronas to explore renewable energy and oil & gas developments. Masdar announced it has signed an MoU to collaborate with Petronas on ground-mounted solar projects and offshore wind opportunities in Malaysia, Vietnam, and Taiwan.

ADNOC and Petronas' MoU also covers the downstream O&G sector in Abu Dhabi, with an agreement to collaborate on supply of crude and the offtake of refined products. In 2020, ADNOC reached financial close on the USD 10bn sale of a 49% stake in its gas pipelines to a GIP-led consortium.


List of key transactions - Malaysia Q12021

Source: Inframation, YOG INFRA analysis



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